Half Yearly Report

 

TIDMTLR 
 
RNS Number : 7486U 
Local Radio Company PLC (The) 
30 June 2009 
 

30th June 2009 
 
 
THE LOCAL RADIO COMPANY PLC 
(the "Local Radio Company'" or the '"Company") 
Unaudited Interim results for the six months to 31st March 2009 
 
 
Highlights: 
  *  Offer from UKRD Group Limited closed on 19 June 2009, with UKRD Group now 
  holding 64.24 per cent of the issued share capital of the Company 
  *  Restructuring of portfolio and reduction in central overheads continuing 
  *  Like for like revenue from continuing operations down by 7.2% to GBP7.0 million 
  (H1 08 GBP7.5million)* 
  *  First Radio Sales decreased commission revenues by 20% to GBP1.0 million 
 
*figures relate to same continuing business in 08 and 09 
 
 
 
 
 
 
Trevor Smallwood, Chairman of The Local Radio Company plc said: 
"Whilst trading conditions remain difficult and the advertising market remains 
depressed, the board has taken and continues to take action to restructure the 
business and reduce its cost base. On balance, the board believes that following 
the restructuring and with some further operational improvements the Group will 
be able to operate profitably and benefit from the upturn when it arrives." 
 
 
 
 
 
 
 
 
For further information please contact: 
 
 
Roger Humm 
Group Finance Director 
The Local Radio Company Plc 
Tel: [phone] 
www.thelocalradiocompany.com 
 
 
Brett Miller/Roxane Marffy 
Ruegg & Co Limited 
Nominated Adviser & Broker 
Tel: [phone] 
 
 
  Chairman's Statement 
 
 
This is my first statement as Chairman following the takeover of The Local Radio 
Company plc by UKRD group last month. The advertising environment remains 
difficult in the radio industry but we are committed to improving the operating 
performance of the company. 
 
 
Operational Developments 
 
 
The Local Radio Company has been undertaking a major restructuring within its 
operations, including the sale of its Jazz FM franchise, and since the takeover 
we have continued this strategy. 
 
 
The enlarged board has been undertaking a financial review of the company's 
portfolio and will be implementing changes with a view to making the company 
trade profitably by the end of the year. Within the last several weeks the 
company has disposed of four radio stations, Fire Media Limited, Silk FM 
Limited, Arrow FM Limited and Sovereign Radio Limited. It has also announced the 
closure of Mix 107. 
We will continue to review costs and make efficiencies wherever possible. 
 
 
Financial Performance 
 
 
In the six months to March 2009 turnover was GBP6.0m from continuing activities 
excluding the five stations mentioned above. Due to accounting rules the income 
statement includes these under continuing activities. The pro forma numbers 
below include these stations under discontinued activities to provide a more 
accurate picture of the underlying performance of the group's businesses. 
 
 
+-----------------+------------+--------------+--+------------+--------------+--+------------+--------------+ 
|                 |   6 months to 31 March    |  |   6 months to 31 March    |  |   Year to 30 September    | 
|                 |           2009            |  |           2008            |  |           2008            | 
+-----------------+---------------------------+--+---------------------------+--+---------------------------+ 
|                 |            |              |  |            |              |  |            |              | 
+-----------------+------------+--------------+--+------------+--------------+--+------------+--------------+ 
|                 | Continuing | Discontinued |  | Continuing | Discontinued |  | Continuing | Discontinued | 
+-----------------+------------+--------------+--+------------+--------------+--+------------+--------------+ 
|                 |    GBP'000 |      GBP'000 |  |    GBP'000 |      GBP'000 |  |    GBP'000 |      GBP'000 | 
+-----------------+------------+--------------+--+------------+--------------+--+------------+--------------+ 
|                 |            |              |  |            |              |  |            |              | 
+-----------------+------------+--------------+--+------------+--------------+--+------------+--------------+ 
| Revenue         |      5,966 |        1,005 |  |      6,353 |        1,158 |  |     12,514 |        2,226 | 
+-----------------+------------+--------------+--+------------+--------------+--+------------+--------------+ 
|                 |            |              |  |            |              |  |            |              | 
+-----------------+------------+--------------+--+------------+--------------+--+------------+--------------+ 
| Gross Profit    |      4,401 |          711 |  |      4,704 |          872 |  |      9,252 |        1,628 | 
+-----------------+------------+--------------+--+------------+--------------+--+------------+--------------+ 
|                 |            |              |  |            |              |  |            |              | 
+-----------------+------------+--------------+--+------------+--------------+--+------------+--------------+ 
| Loss on         |      (711) |        (302) |  |      (523) |        (296) |  |      (965) |        (762) | 
| operations*     |            |              |  |            |              |  |            |              | 
+-----------------+------------+--------------+--+------------+--------------+--+------------+--------------+ 
 
 
*Loss on operations is stated before amortisation of intangible assets - see 
note 5. 
 
 
First Radio Sales 
 
 
First Radio Sales, the airtime sales company representing 133 stations across 
the UK, in which the Group has a 50% share, has been particularly hard hit by 
the economic downturn in the first six months of the year. Commission revenues 
decreased by 20% to GBP990,000. However First Radio Sales is still trading 
profitably and is the third largest sales point in radio. 
 
 
Outlook 
 
 
Whilst trading conditions remain difficult and the advertising market remains 
depressed, the board has taken and continues to take action to restructure the 
business and reduce its cost base. On balance, the board believes that following 
the restructuring and with some further operational improvements the Group will 
be able to operate profitably and benefit from the upturn when it arrives. 
 
 
 
 
 
 
Trevor Smallwood 
Chairman 
 
 
  Unaudited condensed consolidated income statement for the period ended 
31 March 2009 
 
 
 
 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |          Unaudited |      Unaudited |                    | 
+                                +                +--------------------+----------------+--------------------+ 
|                                |                |                    6 months to |    6 months to |       12 months to | 
+                                +                +--------------------------------+----------------+--------------------+ 
|                                |                |                  31 March 2009 |       31 March |       30 September | 
|                                |                |                                |          2008* |              2008* | 
+--------------------------------+----------------+--------------------------------+----------------+--------------------+ 
|                                |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |           GBP'000  |       GBP'000  |           GBP'000  | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| REVENUE                        |                |              6,971 |          7,511 |             14,740 | 
+                                +                +                    +                +                    + 
|                                |                |                    |                |                    |                                | 
+--------------------------------+----------------+--------------------+----------------+--------------------+--------------------------------+ 
| Cost of sales                  |                |            (1,859) |        (1,935) |            (3,860) | 
+                                +                +                    +                +                    + 
|                                |                |                    |                |                    |                                | 
+--------------------------------+----------------+--------------------+----------------+--------------------+--------------------------------+ 
|                                |                |           ________ |       ________ |           ________ | 
+                                +                +                    +                +                    + 
|                                |                |                    |                |                    |                                | 
+--------------------------------+----------------+--------------------+----------------+--------------------+--------------------------------+ 
| GROSS PROFIT                   |                |              5,112 |          5,576 |             10,880 | 
+                                +                +                    +                +                    + 
|                                |                |                    |                |                    |                                | 
+--------------------------------+----------------+--------------------+----------------+--------------------+--------------------------------+ 
|                                |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| Administrative expenses        |                |            (9,157) |        (6,395) |           (16,776) | 
+                                +                +                    +                +                    + 
|                                |                |                    |                |                    |                                | 
+--------------------------------+----------------+--------------------+----------------+--------------------+--------------------------------+ 
|                                |                |           ________ |       ________ |           ________ | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| LOSS ON OPERATIONS             |                |            (4,045) |          (819) |            (5,896) | 
+                                +                +                    +                +                    + 
|                                |                |                    |                |                    |                                | 
+--------------------------------+----------------+--------------------+----------------+--------------------+--------------------------------+ 
| Finance income                 |                |                  2 |             46 |                 51 | 
+                                +                +                    +                +                    + 
|                                |                |                    |                |                    |                                | 
+--------------------------------+----------------+--------------------+----------------+--------------------+--------------------------------+ 
| Finance expense                |                |                  - |            (1) |                (2) | 
+                                +                +                    +                +                    + 
|                                |                |                    |                |                    |                                | 
+--------------------------------+----------------+--------------------+----------------+--------------------+--------------------------------+ 
|                                |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| Share of profits/(losses) of   |                |                127 |            202 |                300 | 
| associates/joint ventures      |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |           ________ |       ________ |           ________ | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| LOSS ON CONTINUING ACTIVITIES  |                |            (3,916) |          (572) |            (5,547) | 
+--------------------------------+----------------+                    +                +                    + 
| BEFORE TAXATION                |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| Tax expense                    |                |                  - |              - |                  - | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |           ________ |       ________ |           ________ | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| LOSS FOR THE PERIOD ON         |                |            (3,916) |          (572) |            (5,547) | 
| CONTINUING ACTIVITIES          |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| Profit/(Loss) from             |                |              (732) |          (399) |            (1,389) | 
| discontinued activities        |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |           ________ |       ________ |           ________ | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| LOSS FOR THE PERIOD            |                |            (4,648) |          (971) |            (6,936) | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| Attributable to:               |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| Equity holders of the parent   |                |            (4,648) |          (931) |            (6,899) | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| Minority interest              |                |                  - |           (40) |               (37) | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |           ________ |       ________ |           ________ | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| (Loss)/Earnings per share      |                |                    |                |                    | 
| attributable to the equity     |                |                    |                |                    | 
| holders of the parent during   |                |                    |                |                    | 
| the period                     |                |                    |                |                    | 
+                                +                +                    +                +                    + 
|                                |                |                    |                |                    |                                | 
+--------------------------------+----------------+--------------------+----------------+--------------------+--------------------------------+ 
| Basic and diluted              |                |            (6.46)p |        (1.29)p |            (9.63)p | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| Continuing operations          |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| Basic and diluted              |                |            (5.44)p |        (0.74)p |            (7.70)p | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| Discontinued operations        |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| Basic and diluted              |                |            (1.02)p |        (0.55)p |            (1.93)p | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
|                                |                |                    |                |                    | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
| * Restated for operations treated as discontinued in later periods                                         | 
+--------------------------------+----------------+--------------------+----------------+--------------------+ 
  Unaudited condensed consolidated statement of changes in equity for the period 
ended 31 March 2009 
 
 
 
 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
|                             |  Share  |  Other   |Retained  |  Total  |Minority  |  Total  | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
|                             |Capital  |Reserves  |Earnings  |         |Interest  | Equity  | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
|                             |GBP'000  | GBP'000  | GBP'000  |GBP'000  | GBP'000  |GBP'000  | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
|                             |         |          |          |         |          |         | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
| Balance at 30 September     |   2,880 |      287 |    6,423 |   9,590 |        - |   9,590 | 
| 2008                        |         |          |          |         |          |         | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
|                             |         |          |          |         |          |         | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
| Changes in equity for       |         |          |          |         |          |         | 
| period                      |         |          |          |         |          |         | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
| Loss per period and total   |       - |        - |  (4,648) | (4,648) |        - | (4,648) | 
| recognised loss             |         |          |          |         |          |         | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
| Share Based Payment         |       - |        - |       43 |      43 |        - |      43 | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
|                             |   _____ |    _____ |   ______ |  ______ |   ______ |  ______ | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
| Balance at 31 March 2009    |   2,880 |      287 |    1,818 |   4,985 |        - |   4,985 | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
|                             |         |          |          |         |          |         | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
|                             |         |          |          |         |          |         | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
|                             |         |          |          |         |          |         | 
+-----------------------------+---------+----------+----------+---------+----------+---------+ 
  Unaudited condensed consolidated balance sheet as at 31 March 2009 
 
 
 
 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |           Unaudited |         Unaudited |                   | 
+                            +         +---------------------+-------------------+-------------------+ 
|                            |         |                     At 31 March 2009 |    At 31 March 2008 |   At 30 September | 
|                            |         |                                      |                     |              2008 | 
+----------------------------+---------+--------------------------------------+---------------------+-------------------+ 
|                            |         |                     |         |         |                   | 
+----------------------------+---------+---------------------+---------+---------+-------------------+ 
|                            |         | GBP'000  | GBP'000  | GBP'000 | GBP'000 | GBP'000 | GBP'000 | 
|                            |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| NON-CURRENT ASSETS         |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| Goodwill                   |         |          |    3,111 |         |  10,457 |         |   6,143 | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| Property, plant and        |         |          |      881 |         |   1,548 |         |   1,040 | 
| equipment                  |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| Investment in joint        |         |          |    2,533 |         |   2,451 |         |   2,582 | 
| venture                    |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| Investments in Associates  |         |          |       11 |         |      47 |         |      15 | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |   ______ |         |  ______ |         |  ______ | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| TOTAL NON-CURRENT ASSETS   |         |          |    6,536 |         |  14,503 |         |   9,780 | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| CURRENT ASSETS             |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| Trade and other            |         |    2,836 |          |   2,758 |         |   3,058 |         | 
| receivables                |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| Cash and cash equivalents  |         |      524 |   ______ |   2,032 |         |     566 |         | 
|                            |         |          |          |         |  ______ |         |  ______ | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |    3,360 |         |   4,790 |         |   3,624 | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |   ______ |         |  ______ |         |  ______ | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| TOTAL ASSETS               |         |          |    9,896 |         |  19,293 |         |  13,404 | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| LIABILITIES                |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| CURRENT LIABILITIES        |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| Trade and other payables   |         |    4,911 |          |   3,736 |         |   3,814 |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |   ______ |         |  ______ |         |  ______ | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |    4,911 |         |   3,736 |         |   3,814 | 
+                            +         +          +          +         +         +         +         + 
|                            |         |          |          |         |         |         |         |                            | 
+                            +         +          +          +         +         +         +         +----------------------------+ 
|                            |         |          |          |         |         |         |         |                            | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+----------------------------+ 
|                            |         |          |   ______ |         |  ______ |         |  ______ | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| TOTAL LIABILITIES          |         |          |    4,911 |         |   3,736 |         |   3,814 | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |   ______ |         |  ______ |         |  ______ | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| TOTAL NET ASSETS           |         |          |    4,985 |         |  15,557 |         |   9,590 | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |          |         |         |         |         | 
+                            +         +          +          +         +         +         +         + 
|                            |         |          |          |         |         |         |         |                            | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+----------------------------+ 
| Capital and reserves       |         |          |          |         |         |         |         | 
| attributable to equity     |         |          |          |         |         |         |         | 
| holders of the company     |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| Share Capital              |         |          |    2,880 |         |   2,880 |         |   2,880 | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| Other Reserves             |         |          |      287 |         |     489 |         |     287 | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| Retained Earnings          |         |          |    1,818 |         |  12,215 |         |   6,423 | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |   ______ |         |  ______ |         |  ______ | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |    4,985 |         |  15,584 |         |   9,590 | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| Minority Interest          |         |          |        - |         |    (27) |         |       - | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |   ______ |         |  ______ |         |  ______ | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
| TOTAL EQUITY               |         |          |    4,985 |         |  15,557 |         |   9,590 | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
|                            |         |          |          |         |         |         |         | 
+----------------------------+---------+----------+----------+---------+---------+---------+---------+ 
  Unaudited condensed consolidated cash flow statement for the period ended 
31 March 2009 
 
 
 
 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |  Unaudited |        |  Unaudited |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |   6 months |        |   6 months |        |  Year to | 
|                                     |        |         to |        |         to |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |   31 March |        |   31 March |        |  30 Sept | 
|                                     |        |       2009 |        |      2008* |        |    2008* | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |    GBP'000 |        |    GBP'000 |        |  GBP'000 | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| LOSS BEFORE TAXATION                |        |    (3,916) |        |      (572) |        |  (5,547) | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Loss of discontinuing operations    |        |      (732) |        |      (399) |        |  (1,227) | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Finance income                      |        |        (2) |        |       (46) |        |     (51) | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Finance expense                     |        |          - |        |          1 |        |        2 | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Share of profits/(losses) of        |        |      (127) |        |      (202) |        |    (300) | 
| associates/joint ventures           |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Provision of share based payments   |        |         43 |        |         39 |        |       88 | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Depreciation                        |        |        220 |        |        289 |        |      532 | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Profit on disposal of Property,     |        |      (426) |        |            |        |          | 
| Plant & Equipment                   |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Amortisation                        |        |      3,032 |        |          - |        |    4,170 | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |     ______ |        |     ______ |        |   ______ | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Cash flows from operating           |        |    (1,908) |        |      (890) |        |  (2,333) | 
| activities before changes in        |        |            |        |            |        |          | 
| working capital and provisions      |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| (Increase)/Decrease in debtors      |        |        238 |        |        393 |        |    (191) | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Increase/(Decrease) in creditors    |        |      1,071 |        |      (172) |        |      185 | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |      _____ |        |      _____ |        |    _____ | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| CASH GENERATED FROM OPERATIONS      |        |      (599) |        |      (669) |        |  (2,339) | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| INVESTING ACTIVITIES                |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Dividends from JVs                  |        |        200 |        |        350 |        |      350 | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Finance income                      |        |          2 |        |         46 |        |       51 | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Purchase of Fixed Assets            |        |      (232) |        |      (123) |        |    (214) | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Purchase of Fixed Assets            |        |       (36) |        |          - |        |        - | 
| investments                         |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Sale of Fixed Assets investments    |        |        623 |        |          - |        |        - | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Disposal of subsidiary undertaking  |        |          - |        |          - |        |      252 | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |      _____ |        |      _____ |        |    _____ | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| NET CASH FROM INVESTING ACTIVITIES  |        |        557 |        |        273 |        |      439 | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| FINANCING ACTIVITIES                |        |            |        |            |        |          | 
+                                     +        +            +        +            +        +          + 
|                                     |        |            |        |            |        |          |                                     | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+-------------------------------------+ 
|                                     |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Finance expense                     |        |          - |        |        (1) |        |      (2) | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| Share premium write off costs       |        |          - |        |       (39) |        |        - | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |      _____ |        |      _____ |        |    _____ | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| NET CASH FROM / (USED IN) FINANCING |        |          - |        |       (40) |        |      (2) | 
| ACTIVITIES                          |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |      _____ |        |      _____ |        |    _____ | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| NET INCREASE / (DECREASE) IN CASH   |        |       (42) |        |      (436) |        |  (1,902) | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| CASH AT BEGINNING OF PERIOD         |        |        566 |        |      2,468 |        |    2,468 | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| CASH AT END OF PERIOD               |        |        524 |        |      2,032 |        |      566 | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
|                                     |        |            |        |            |        |          | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
| * Restated for operations treated as discontinued in later periods                                  | 
+-------------------------------------+--------+------------+--------+------------+--------+----------+ 
  Notes to the unaudited condensed financial statements for the period ended 
31 March 2009 
 
 
 
 
1General 
 
 
The Local Radio Company PLC is a public limited company ("the Company") 
incorporated in the United Kingdom under the Companies Act 2006 (registration 
number 4931007). 
 
 
The Company is domiciled in the United Kingdom and its registered address is 11 
Duke Street, High Wycombe, Buckinghamshire, HP13 6EE. The Company's Ordinary 
Shares are traded on the Alternative Investment Market ("AIM"). 
 
 
 The Group's principal activity is that of operating local radio licences and 
developing ancillary revenues including, but not exclusively, web, digital, 
concert and other entertainment related activity. 
 
 
2    Basis of preparation 
 
 
These unaudited financial statements have been prepared in accordance with 
International Financial Reporting Standards, International Accounting Standards 
and Interpretations (collectively IFRS's) issued by the International Accounting 
Standards Board (IASB) as adopted by the European Union (Adopted IFRS's) and 
with those parts of the Companies Act 2006 applicable to companies preparing 
their accounts under Adopted IFRS's.  The accounting policies and computation 
methods used in these statements are the same as those used in preparing the 
financial statements for the year ended 30 September 2008. 
 
 
The results for the Group for the six months ended 31 March 2009 and the 
comparative results for the six months ended 31 March 2008 are unaudited. The 
financial information contained herein does not constitute statutory accounts 
within the meaning of section 434 of the Companies Act 2006. 
 
 
The comparatives for the year ended 30 September 2008 have been derived from the 
Company's full statutory accounts for that period. A copy of those statutory 
accounts for that period has been delivered to the Registrar of Companies. The 
auditors' report on those accounts was unqualified, but included a reference to 
the going concern basis of preparation which the auditors drew attention to 
without qualifying their report. 
 
 
3    Going Concern 
 
 
The financial statements have been prepared on a going concern basis. In 
considering the appropriateness of the going concern assumption, the directors 
have taken into consideration the operational developments referred to in the 
Chairman's statement and the Group's cash flow forecasts. The board are 
satisfied that these measures will enable the group to continue to trade for the 
foreseeable future. 
 
 
4    Loss per share 
 
 
+----------------------------+-----------+------------+------------+----------------+ 
|                            |           |March 2009  | March 2008 | September 2008 | 
|                            |           |            |            |                | 
+----------------------------+-----------+------------+------------+----------------+ 
|                            |           |      Total |      Total |          Total | 
|                            |           |            |            |                | 
+----------------------------+-----------+------------+------------+----------------+ 
| Loss for the year (GBP000) |           |    (4,648) |    (931)   |       (6,899)  | 
+----------------------------+-----------+------------+------------+----------------+ 
|                            |           |            |            |                | 
+----------------------------+-----------+------------+------------+----------------+ 
| Weighted average number of | (Basic)   | 72,001,588 | 72,001,588 |     72,001,588 | 
| shares                     |           |            |            |                | 
+----------------------------+-----------+------------+------------+----------------+ 
| Basic loss per share       |           |    (6.46)p |    (1.29)p |        (9.63)p | 
+----------------------------+-----------+------------+------------+----------------+ 
 
 
 
 
5Loss on ordinary activities before taxation is after charging: 
 
 
+----------------------------------------+--------------+--------------+----------------+ 
|                                        |  6 months to |  6 months to |        Year to | 
+----------------------------------------+--------------+--------------+----------------+ 
|                                        |     31 March |     31 March |   30 September | 
|                                        |         2009 |         2008 |           2008 | 
+----------------------------------------+--------------+--------------+----------------+ 
|                                        |      GBP'000 |      GBP'000 |        GBP'000 | 
+----------------------------------------+--------------+--------------+----------------+ 
|                                        |              |              |                | 
+----------------------------------------+--------------+--------------+----------------+ 
| Depreciation                           |          206 |          224 |            436 | 
+----------------------------------------+--------------+--------------+----------------+ 
| Impairment and amortisation of         |        3,032 |            - |          4,169 | 
| intangible assets                      |              |              |                | 
+----------------------------------------+--------------+--------------+----------------+ 
| Equity settled share based payments    |           43 |           39 |             88 | 
+----------------------------------------+--------------+--------------+----------------+ 
 
 
6Tax on loss on ordinary activities 
 
 
No tax has been accounted for in the period as there are sufficient losses and 
capital allowances brought forward to reduce the charge to nil, on the basis 
that the tax charge for the half year is estimated on the basis of the 
anticipated tax rates applying for the full year. 
 
 
7Copies of Interim statement 
 
 
A copy of this statement is available to view and download from the Company's 
website at www.thelocalradiocomany.com. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IR MGGFVNGLGLZG